The Pensions Review: final recommendations (UK)
This final report of the Pensions Review, a major project launched in April 2023 by the Institute for Fiscal Studies, in partnership with abrdn Financial Fairness Trust, examines the main risks to today’s working-age individuals in the UK pension system and sets out policy proposals primarily focused on improving outcomes for future generations of retirees. This report does further analysis and draws on the large number of reports we have published as part of this review.
Challenges within the current system
The current UK pension system, with automatic enrolment of most employees into private pensions alongside a flat-rate state pension payable from a single state pension age, offers significant advantages. This simple design encourages private pension saving while also providing flexibility for those who wish to either opt out of saving or alternatively contribute more. It does not need a complete overhaul. But despite its strengths, the system faces significant challenges.
